New Opportunities, Inc. And Affiliates

Finding No. 2024-001: Annual Audit Submission - Significant Deficiency Assistance Listing Program Title and Number: All Federal Agency: All Criteria: As per the Code of Federal Regulations, Section 200.512 - Report Submission, the audit must be completed and the data collection form and reporting package must be submitted within the earlier of 30 calendar days after receipt of the auditors’ report, or nine months after the end of the audit period. The due date for the submission was July 31, 2025. Condition: The audit and reporting package were not submitted by the due date July 31, 2025. Cause: The Organization was not able to complete the financial statements and federal single audit by the extended due date. Effect: The audit and federal reporting package were not filed on time. Questioned Costs: None. Context: The financial statements and federal single audit were not able to be completed by the due date. Recommendation: We recommend that all necessary efforts be taken to ensure timely submission of the audit and financial reporting package. Management’s Response/View of Responsible Officials: Management agrees with the auditors' findings. Management will meet timeliness standards in subsequent fiscal years.

Finding No. 2023-001: Financial Reporting – Significant Deficiency, is also considered a finding under Federal Award Findings and Questioned Costs. This finding is applicable to all federal programs. Criteria An accounting system and effective internal control environment should support the preparation of thefinancial statements in accordance with Generally Accepted Accounting Principles (“GAAP”) and grant reports in accordance with Federal and State compliance requirements, including a timely financial close process at year end. Condition In fiscal year 2023, the Organization’s accounting processes and internal controls over financial reporting did not meet timeliness standards. As a result, the financial close process including the grant schedule was not completed within the standard period. Cause The Organization experienced resource constraints due to illness, staff vacancy, and changes in financedepartment personnel during the fiscal year. Effect The books and records were not closed and finalized until many months after year end. Context The Organization’s accounting processes and internal controls over financial reporting were not performed in a timely manner. Recommendation We recommend that the Organization maintain an adequate level of appropriately trained andexperienced personnel. This will help ensure that the accounting processes and internal controls over financial reporting will function in a timely manner, and that the financial close processwill be complete, to meet identified standards. Management’s Response/View of Responsible Officials Management agrees with the auditors' findings. Management will meet timeliness standards in subsequent fiscal years.

Finding No. 2023-002: Annual Audit Submission – Significant Deficiency Assistance Listing Program Title and Number: All Federal Agency: All Criteria As per the Code of Federal Regulations, Section 200.512 - Report Submission, the audit must be completed and the data collection form and reporting package must be submitted within the earlier of 30 calendar days after receipt of the auditors’ report, or nine months after the end of the auditperiod. The due date for the submission was July 31, 2024. Condition The audit and reporting package were not submitted by the due date July 31, 2024. Cause The Organization was not able to complete the financial statements and federal single audit bythe extended due date. Effect The audit and federal reporting package were not filed on time. Questioned Costs None. Context The financial statements and federal single audit were not able to be completed by the due date. Recommendation We recommend that all necessary efforts be taken to ensure timely submission of the audit andfinancial reporting package. Management’s Response/View of Responsible Officials Management agrees with the auditors' findings. Management will meet timeliness standards in subsequent fiscal years.

Finding No. 2022-001: Financial Reporting – Significant Deficiency, is also considered a finding under Federal Award Findings and Questioned Costs. This finding is applicable to all federal programs. Criteria - An accounting system and effective internal control environment should support the preparation of the financial statements in accordance with Generally Accepted Accounting Principles (“GAAP”) and grant reports in accordance with Federal and State compliance requirements, including a timely financial close process at year end. Condition - In fiscal year 2022, the Organization’s accounting processes and internal controls over financial reporting did not meet timeliness standards. As a result, the financial close process including the grant schedule was not completed within the standard period. Cause - The Organization experienced resource constraints due to illness, staff vacancy, and changes in finance department personnel during the fiscal year. In addition, the Organization converted a consolidating subsidiary from a for-profit entity to a not-for-profit entity; which included a number of complicated accounting transactions. Effect - The books and records were not closed and finalized until many months after year end. Context - The Organization’s accounting processes and internal controls over financial reporting were not performed in a timely manner. Recommendation - We recommend that the Organization maintain an adequate level of appropriately trained and experienced personnel. This will help ensure that the accounting processes and internal controls over financial reporting will function in a timely manner, and that the financial close process will be complete, to meet identified standards. Management’s Response/View of Responsible Officials - Management agrees with the auditors' findings. Management identified the prior year occurrences as one time and will meet timeliness standards in subsequent fiscal years.

Finding No. 2022-002: Annual Audit Submission – Significant Deficiency Assistance Listing Program Title and Number: All Federal Agency: All Criteria - As per the Code of Federal Regulations, Section 200.512 - Report Submission, the audit must be completed and the data collection form and reporting package must be submitted within the earlier of 30 calendar days after receipt of the auditors’ report, or nine months after the end of the audit period. The due date for the submission was July 31, 2023. Condition - The audit and reporting package were not submitted by the due date July 31, 2023. Cause - The Organization was not able to complete the financial statements and federal single audit by the extended due date. Effect - The audit and federal reporting package were not filed on time. Questioned Costs - None. Context - The financial statements and federal single audit were not able to be completed by the due date. Recommendation - We recommend that all necessary efforts be taken to ensure timely submission of the audit and financial reporting package. Management’s Response/View of Responsible Officials - Management agrees with the auditors’ finding. Management identified this occurrence as one time and will meet timeliness standards in subsequent fiscal years.